Another offshore wind developer exits California in $1.22-billion deal with Trump

Key Points:

• German energy company RWE agreed to a $1.22 billion deal with the U.S. Interior Department to abandon offshore wind leases off New York, Louisiana, and Northern California, halting projects that supported clean energy goals.
• This is the fifth and largest such agreement under the Trump administration, which has pushed companies away from offshore wind toward fossil fuel investments, citing concerns over cost and reliability.
• RWE plans to invest $900 million in a Louisiana liquefied natural gas terminal and $300 million in natural gas turbine development instead of pursuing offshore wind projects in the U.S.
• California’s offshore wind ambitions are significantly impacted, with only two leases remaining on the West Coast, complicating the state’s target of 25 gigawatts of offshore wind power by 2045.
• The agreements have drawn strong criticism from environmental groups, state officials, and lawmakers who argue they undermine clean energy progress and may face legal challenges for alleged corruption and procedural violations.